Q. We have an insured who is self-insuring workers’ compensation and paying all their employees claims, but they are not approved by the Texas Department of Insurance as a Certified Self-Insurer. Are there any penalties for not being a Certified Self-Insurer?

A. According to the Texas Department of Insurance website on Certified Self Insurance, workers’ compensation is not mandatory in Texas. Companies that use the term “self-insured” to describe their workers’ compensation coverage status are considered a non-subscriber under the Texas Labor Code if they do not hold a Certificate of Authority.